South Mountain Crossing Monument Sign |
South Mountain Crossing—a 130,200 ft2 partially-complete
neighborhood shopping center at the northwest corner of Southern and 35th
Avenues in Phoenix—was acquired by Lamar Companies of Fairfield, Connecticut on
Friday for $11,172,825. The seller was RN Properties South Mountain, LLC, a
single-purpose entity comprised of Arte Moreno, Joe Fitzgerald, James Shough
and Bill Beverage. The existing plat for South Mountain Crossing calls for an
additional 92,898 ft2 of retail development on the remaining 8.22
acres of undeveloped pad space.
The neighborhood shopping center was previously anchored by
Mervyns Department Store, which was subsequently demised into two junior anchor
spaces, one of which is occupied by C-A-L Ranch Stores. In addition to the
81,200 ft2 of combined anchor space, there is a 9,270 ft2
inline space adjacent to the anchor and another 39,790 ft2 of
freestanding multi-tenant retail space in four buildings. The aforementioned
8.22 acres of undeveloped pad space is demised into five lots. The project sits
on 25.84 acres of R1-4 zoning and was actively developed in 2007 and 2008 before
going into foreclosure.
South Mountain Crossing Inline Portion |
The land on which the project sits was previously acquired
in September 2006 for $8,578,160 or $7.68 per square foot. A $37.372m
construction deed of trust was taken out against the property and a ground
lease with US Bank was entered into in January of 2007 for twenty five years
with four five year options to extend. Following an extension of the maturity
date on the Lasalle Bank note, the property was noticed for trustee sale and
reverted to an entity controlled by Bank of America, Compass Bank and US Bank
with a $13.547m credit bid.
The current sellers acquired title for $6.05m at a February
2012 bank sale allocated as $2.2m for the built property and the US Bank ground
lease and $3.85m for the undeveloped pads. In December of 2013, the new owners
sold the US Bank ground lease for $3.458m or $691.60 per square foot, reported
at that time to be a 5.25% cap rate. On Friday—after slightly less than two and
a half years—the ownership group was able to sell the as yet incomplete project
for $11,172,485 apportioned as $747,825 down and $10.425m in new debt with Bank
of the West.
To Contact the Author:
Paul Dionne – pdionne@vizzda.com
No comments:
Post a Comment